For those who have dreams of going into business, there may be opportunities along the way to help you kick start your journey into becoming an entrepreneur. The easiest way to get started is to buy an established business that is being offered for sale.
For those who have dreams of going into business, there may be opportunities along the way to help you kick start your journey into becoming an entrepreneur. The easiest way to get started is to buy an established business that is being offered for sale. Doing this will save you a tremendous amount of time setting up new procedures, systems, or policies required in any business. It also takes out the guesswork surrounding feasibility and lets you build on top of what could be years of legwork. While it may prove costly to buy a business, you will find it easier to secure financing for it, given that investors and bankers are more comfortable lending to businesses with proven track records.
At this point, you may already be thinking about heading to browse our businesses for sale. Before you dive in, here are some important steps to consider:
1. Buying a business starts with choosing what works for you. Be sure it is something that inspires you, you have a passion for or at least have a definite interest in. Keep in mind that most businesses offer a period of training should you not have relevant experience.
2. Acquire a business profile and appropriate financial details to obtain a comprehensive overview of the business. This information will vary depending on the style of the business but may include staff details, trading hours, lease details and business assets.
3. Assess the business’ value. What are you willing to pay for it? This can often be a tricky question; it is worth doing some market research and comparing the business with other similar businesses on the market.
4. Understand your personal financial position. What are your current assets and liabilities? Obtaining finance to purchase a business is not always as easy as you think it is going to be. You also need to take into consideration that you will require working capital immediately upon settlement.
5. Make an offer. Outline the special conditions you require in the contract. To help with what special conditions you may need, you may want to watch our “What special conditions do I need in a Business Sale Contract?” video. All Raine & Horne Business Sales’ business profiles come with an ‘Offer to Purchase’ document included. This provides purchasers with a guideline for what details are required when making the offer. We highly recommend you ensure there is a Due Diligence special condition included when you purchase any business.
6. Once the offer has been accepted and the Business Sale Contract signed, you will need to appoint a conveyancer. Be sure to nominate a conveyancer who has experience in business settlements. Your conveyancer will ensure the business transfer is completed properly for a smooth settlement.